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Re: Coz Mabluda post# 100901

Saturday, 09/16/2017 8:45:08 PM

Saturday, September 16, 2017 8:45:08 PM

Post# of 255584
Not exactly a donation to shareholders, it does serve an alternative purpose. It 1. Makes the company more palatable for a buyout or outside investors 2. Makes it more presentable for NYSE and Nasdaq 3. Puts powder in the CEO's pocket should the company need to raise capital in the future. It's is almost always a good thing, the two notable exceptions being 1 an excessive loss of liquidity (like reducing to just 100 shares would make them impossible to trade, not problem here) and 2. A reverse split (usually a sign of a distressed company and a scam)